John Byrne says that reporters have confirmed to him that concerns about Dreier's sexuality were a factor in preventing him from replacing DeLay but that they didn't have enough to write a story. It was obvious from the reporting at the time that this was the case, as no news article actually stated in any clear terms just what the problem was with Dreier. Claims that he wasn't thought to be conservative enough were, you know, belied by his actual voting record. Reporters were just dancing around what the truth was. Whether or not Dreier is gay it seems to be quite an important story that concerns that he's gay might have been enough for Republicans to stop him from obtaining the leadership position.
But, this is your liberal media at work.
John has more on closet heterosexuals in Radar.